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JJ0317 Asked June 2017

Can a family member be paid for cleaning up property to be able to sell?

Mom's in a nursing home & dad moved out of homestead into an apartment. Dad is now looking to enter the nursing home.

Guestshopadmin Jun 2017
Please note that this income for cleaning property would need to be reported to IRS and taxes paid on it for it to pass most Medicaid applications.

freqflyer Jun 2017
Only if your parents agree to this in writing.

This is a good question, JJ, as I don't recall anyone asking this before. When I cleaned out my Dad house for 70 years worth of stuff that he and my Mom had accumulated, I did pay from Dad's checking account for hired professionals to come in to help me sort through stuff, and for companies to haul away unusable items. But I never paid myself. I brought home items for myself, so it was an even payoff.

As for getting the house ready to sell, now a days, you can sell the house "as is" for a lower price.  There are people and firms that like to purchases homes to redo and sell.  I did that with my parent's house, I didn't need to deal with updating the bathrooms, kitchens, and putting down new carpeting.  The house sold fairly quick at a win-win price. 

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